The cockpit of the new StreetScooter Work XL electric van, a joint venture between Ford and Deutsche Post. Wolfgang Rattay / Reuters
The cockpit of the new StreetScooter Work XL electric van, a joint venture between Ford and Deutsche Post. Wolfgang Rattay / Reuters
The cockpit of the new StreetScooter Work XL electric van, a joint venture between Ford and Deutsche Post. Wolfgang Rattay / Reuters
The cockpit of the new StreetScooter Work XL electric van, a joint venture between Ford and Deutsche Post. Wolfgang Rattay / Reuters

Ford trade in scheme targets old UK cars


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Ford has become the latest car manufacturer to target gas-guzzling vehicles by launching plans to encourage individuals in the UK to trade in their cars in a bid to help the environment.

The American car company is offering up to £2,000 (Dh9,436) for trade-ins of cars that are at least seven years old. While British consumers have already seen a number of comparable offers to buy up polluting diesel vehicles, the Ford promotion applies to all cars built before 2010 by any manufacturer.

The plan aims to reduce negative environmental impacts by reducing the number of cars on the roads that were built before emissions standards changed in 2010.

Other car makers such as Mercedes have launched similar schemes in the past but Ford is the first to accept petrol cars.

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All part-exchanged vehicles traded as part of the scheme will be scrapped in an attempt to keep the most environmentally harmful cars off the roads.

With such offers and the British government announcing plans to ban the sale of new petrol and diesel cars by 2040, the car industry has seen an increase in electric car sales.

The number of electric cars has increased steadily in recent years, particularly in China, the US and Europe, with now more than 2 million electric cars on the roads globally.

There are several benefits associated with the rise of electric cars – they are quicker and quieter than the average petrol or diesel vehicle, and cheaper to operate. However, a report by the National Grid, a UK electricity and gas utility, has warned of several issues linked to the running of electric cars.

The report suggests that car batteries take 19 hours to fully charge when using an average size battery charger of 3.5KW, even when 25 per cent of the battery is already full.

Using a more powerful charging device may blow the fuse when other appliances are used at the same time, the National Grid warned.

The report stated: “If one were to use an above-average power charger, say 11kW, this would require 48 amps. When using such a charger you could not use other high-demand items such as kettles, ovens, and immersion heaters without tripping the main fuse.”

The National Grid has advised electric car owners to avoid boiling the kettle while charging their cars due to the risk of fuses blowing.

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1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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